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developing economies

Declining private investment in infrastructure – a trend or an outlier?

Clive Harris's picture



We’ve just released the 2016 update for the World Bank’s Private Participation in Infrastructure (PPI) Database and it makes for some gloomy reading. Investment commitments (investments) in infrastructure with private participation in Emerging Markets and Developing Economies (EMDEs) fell by a whopping 37% compared to 2015. 

Rising debt and deficits in Emerging Market and Developing Economies (EMDEs) in 5 charts

Ayhan Kose's picture
Debt and budget deficits have risen among emerging market and developing economies since the 2007-2009 financial crisis, rendering these economies more vulnerable to a sharp rise in borrowing costs. Government debt has climbed to 47 percent of GDP in 2016 from 35 percent of GDP in 2007 among emerging market and developing economies, while fiscal deficits have widened to about 5 percent of GDP from roughly 1 percent of GDP over the same period.